Petkim Petrokimya Holding Anonim Sirketi (PETKM) Q1 2025 earnings summary

Executive summary

• Achieved $449 million in total export value for 2024, becoming the export champion of the Aegean Region.

• Maintained operations despite tight polymer spreads and weak aromatics margins, with a 66% capacity utilization rate in 1Q25.

• Report covers the six-month period ended June 30, 2025, with financials prepared under Turkish Financial Reporting Standards and inflation accounting due to hyperinflationary conditions in Turkey.

• Improved operational synergies with STAR Refinery, optimizing heavy naphtha and LPG procurement.

• The group operates primarily in the petrochemical sector, with a recent strategic focus on core business and divestment of port operations.

Financial highlights

• 1Q25 sales were ₺17.7 billion, down 4% quarter-over-quarter.

• Revenue for January–June 2025 was TRY 38.6 billion, down from TRY 49.5 billion year-over-year.

• Net loss for the period was TRY 3.34 billion, compared to a net profit of TRY 3.63 billion in the same period last year.

• EBITDA was negative ₺0.8 billion, flat sequentially.

• Net debt stood at ₺46.3 billion, up 30% quarter-over-quarter.

Outlook and guidance

• Master plan includes new investments in ethylene, PP, and HDPE/LLDPE plants, with final investment decisions expected in 2026.

• Management is implementing a "Master Plan" for new production units and modernization, with feasibility studies completed and further technical/commercial analysis underway.

• Focus on decarbonization and circular economy, targeting 40% emissions reduction by 2035 and carbon neutrality by 2050.

• Capital Markets Board approved a bond issuance of up to TRY 5 billion to support liquidity.